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Amazon Raises Pay to $18 an Hour Inc recently announced its plan to increase its average starting hourly wage to $18 an hour and more. The company also revealed its intent to continue hiring mass amounts of workers in the near future as the retailer continues to expand, with new plans signaling their desire to hire another 125,000 transportation and warehouse workers. In certain areas of the United States, Amazon is also offering signing bonuses of about $3,000 to try to get new hires.

Amazon is yet the latest large-scale company to increase its average hourly wage. Many other companies — such as Dollar General and Dollar Tree — have also offered signing bonuses to try to lure new hires to their company. As the world’s largest online retailer and the second-biggest private employer in the United States, however, this news is definitely noteworthy. 

Currently, the United States is suffering from a labor shortage. While there are fewer people being laid off and collecting unemployment benefits than earlier this year or since the pandemic first started in 2020, many workers in the country have yet to return to the workforce. In July, there was a record number of job openings — but August saw a definite slow down in hirings. 

There are many reasons why workers are not reentering the workforce in great numbers. Many economists forecasted that many would return to work earlier this year, though these initial forecasts have since been revised. Many analysts now believe that more people will return to the workforce in the next few weeks and months now that school has begun in most areas in the nation.

Many employers are growing increasingly desperate to hire more workers, especially now that the holiday season will soon begin. To ensure that consumers get their holiday shopping purchases to their door in time, many companies are looking to hire a mass amount of workers in the next few weeks and months. Amazon recently announced its intent to hire a great number of transportation and warehouse workers. A few weeks ago, Walmart and other large retail corporations also announced their desire to hire more workers before the holiday season officially hits. 

Previously, Amazon set a $15 average wage in 2018. Earlier this year, the company raised its average hourly wage to about $17. Now, to continue to draw more workers in, the wage has been raised again to $18 or more. In comparison, Walmart’s average hourly wage is about $16.

Amazon is also looking to open even more logistics facilities this year after more than 250 new ones have already opened this year. The company is also looking towards hiring more workers to help reach its goal of offering one-day shipping to Prime customers, a goal Amazon has been working towards for a while now. Amazon’s external delivery service partners are also looking to hire about 50,000 more workers to aid in transportation and delivery to customers. 

All of these new additions and hires are expected to be completed, or met, by the end of 2021. 


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